DHFL's Q4FY16 Net Profit up by 16.9% at Rs 189.66 crore

Dewan Housing Finance Ltd. (DHFL) has reported 16.9 per cent growth in net profit at Rs 189.66 crore for the quarter ended March 31, 2016 as against Rs 162.28 crore in the corresponding quarter of the previous year.

It’s standalone Net Interest Income (NII) has grown by 12.65 at Rs 280.96 crore as against Rs 249.41 crore in Q4FY15.

For the entire period of FY16, it has reported standalone net profit growth of 17.4 per cent at Rs 729.2 crore, and it’s standalone Net Interest Income (NII) has grown by 16.69 per cent at Rs 729.2 crore as against Rs 621.29 crore in FY15. Net Interest Margin (NIM) has been reported at 2.96 per cent in FY16.

DHFL is among the oldest and the third largest housing finance companies (HFCs) in India. DHFL primarily provides housing finance to individuals, especially to the low and lower‐middle‐income groups in Tier II to Tier IV cities. The Company’s average loan ticket size at the portfolio level stands at Rs 12.40 lakhs. DHFL’s total AUM (Assets Under Management) have grown by 22.22 per cent on a YoY basis at Rs 69,523.90 crore from Rs 56,884.41 crore in FY15. It is planning to come up with innovative products and services for SME borrowers.

On the asset quality front, it  is maintaining Gross NPA consistently below one per cent, and has remained stable over the past three years. Currently Gross NPA has been reported at 0.93 per cent amounting to Rs 573.06 crore. Loan disbursements stand at Rs 24,202 crore for the year ended March 31, 2016, showing an increase of 22.1 per cent, over the previous year.

On the valuation front, it is currently trading at 1.07 times its book value of Rs 184.7 per share as on 31st March, 2016, which is the cheapest among its peers. However, that is mainly on account of its lower return ratios amongst its peers; and risk perceptions about the group.